Blockchain

Existential threat or opportunity for the financial system?

Blockchain technology is seen as a potential game changer for big banks and stock market operators with major consequences for IT and business models. Blockchain is a distributed database with decentralized consensus in which for example money transactions, financial investments (shares, bonds, derivatives), ownership rights (e.g. register of cars, land register entries) or fundamental rights (real estate) are recorded immutably and efficiently.

Transactions based on cryptofinance are handled directly between the payer and the recipient and thus question the role of intermediaries. By using Blockchain technology, the average processing time for transactions can be significantly reduced and the average cost per transaction is lowered. Various industry figures show that by 2022, the technology could achieve savings of 13 to 18 billion euros a year in the banking infrastructure, as Blockchain optimizes cross-border payments, securities trading and fulfilling regulatory requirements.

As an intermediary between technology providers and users, BearingPoint can advise and support different stakeholders. Our offeringincludes complete solutions on blockchain, from business strategy via process integration to technology implementation.

News

ISO begins work on the standardization of blockchain technology
With the kick-off of the newly set up Technical Committee 307 (TC 307) in early April 2017 in Sydney, ISO has begun its work on the standardization of technology for blockchain and distributed electronic journals. The goal is to improve interoperability and data exchange between users, applications and systems. The German DIN mirrors the work of the ISO / TC 307 in its "Normenausschuss Informationstechnik und Anwendungen (NIA)" (Standards Committee Information Technology and Applications). BearingPoint accompanies and supports this work at the national level at DIN and international level at ISO through participation in working groups with reference to architecture and taxonomy, smart contracts and identity management.

Overcoming the rift between Financial Institutions and FinTechs: Although banks may have played down the power and disruptive potential of FinTechs at first, it has become quite clear that the FinTechs are here to stay.

The revolutionary possibilities opened up by blockchain technology will soon begin to enable entirely new business models and product solutions, transforming the insurance industry for decades to come.

Cryptofinance technologies have the potential to revolutionize the financial sector by transforming business models, connecting new counterparties and generating sweeping efficiencies, but work needs to be done before the full benefits of the underlying blockchain technology are realized.